The Senate and House both return to session this week. The Senate is expected to vote this week on competing measures to replace or modify the sequester – the automatic, across-the-board spending reductions set to legally take effect this Friday, March 1 absent Congressional action. The Senate Democrats’ plan would replace one year of sequestration with a combination of alternative spending cuts and additional revenue. The Senate Republicans are likely to offer a plan that would not replace the sequester but instead give federal agencies more flexibility in implementing the cuts. While neither plan is expected to clear Congress, debate and votes on these measures may help set the stage for budget negotiations next month to address the sequester and appropriate funding for federal government operations for the rest of fiscal year 2013.

The House, which last year passed two sequester replacement plans, has indicated that it will not consider any proposal to alter or avert the sequester until the Senate takes action. The House is scheduled to hold hearings this week on reauthorization of the Workforce Investment Act (WIA), school safety, measuring teacher performance, state forest management, Temporary Assistance for Needy Families (TANF) work requirements, and other topics relevant for states.  Also this week, the Senate Finance Committee is expected to vote on the confirmation of Jacob Lew as Secretary of the Treasury.